The Centre has notified final rules under all four Labour Codes, paving the way for full implementation of labour reforms Pexels
India

Labour Codes Explained: Centre Notifies Final Rules for Four Labour Codes; Omission of Minimum Support Wage Formula Wage Raise Concerns

New labour codes usher in national floor wage, shorter workweeks and social security for gig workers, but drop long-standing minimum wage formula, sparking fears of weaker pay protections

Author : Khushboo Singh

The Centre has notified final rules for all four Labour Codes, paving the way for full implementation of long-pending labour reforms. The framework introduces a national floor wage, an eight-hour workday with a 48-hour weekly cap, Aadhaar-linked registration and social security for gig and unorganised workers, but omits a clear minimum wage formula, raising fears of lower wages and wider interstate disparities.

On 8th and 9th May, via publication of official gazettes, the government had notified the final rules under all four Labour Codes, giving effect to the proposed labour reforms that were introduced four months back in January for stakeholder consideration.

This decision gives way to the full implementation of the Labour Codes, almost five years after the reforms were introduced back in 2020 in a bid to build a comprehensive framework for all 29 labour laws.  

The four codes— the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020— had come into execution on November 21, 2025.

The new legal framework allows for a national-level floor wage plan, an eight-hour workday with 48-hours cap, Aadhaar-linked registration for gig and unorganised workers, mandatory wage slips, and expanded social security measures.

See also: Uttar Pradesh Government Announces Interim Wage Hike to Workers Day After Noida Protest

One cause of concern among the draft rules, as flagged by labour experts and worker groups, is the absence of a detailed formula for calculating minimum wages from the Code on Wages (Central) Rules, 2025. The rules in place state that the minimum wage criteria would be nailed down separately through future government orders. As per experts, this omission may potentially lead to lower minimum wages and larger disparities in wages across states for similar categories of workers. 

The draft rules that were issued in January of this year had retained the long-standing formula for calculating minimum wages, taking into account nutritional intake, clothing, housing rent and education expenses. This criteria was based on the landmark Supreme Court judgement in the 

Reptakos Brett Case, in addition to recommendations of the 15th Indian Labour Conference of 1957.

Labour economists argue that discarding these established benchmarks could weaken the foundation for fair wage fixation and impact collective bargaining.

Formulation of an umbrella security net for gig workers and unorganized sector

As per the Social Security (Central Rules) 2025, all unorganized workers above the age of 16 years must undergo Aadhar-linked registration as a mandatory process. Those who employ gig-workers under their purview, like digital platforms and aggregators, will be required to register the workers on a central government operated official portal in real time, and they also must update exit details when they leave the platform.

The government will also set up a National Social Security Board for gig and platform workers. The board will include representatives from the Parliament, worker associations, employers, state governments, and members representing Scheduled Castes, Scheduled Tribes, women, and minority communities. The move aims to create a formal framework to extend welfare benefits and social security to India’s booming gig economy workforce.

See also: Strict Administrative Crackdown in Noida: 203 Contractors’ Licenses Cancelled, 24 Firms Blacklisted, ₹1.16 Crore Fine Imposed For Not Adhering To The Renewed Enforced Labour Laws Following Noida Workers’ Protest

Under the Occupational Safety, Health and Working Conditions (Central) Rules, 2026, contractors operating across multiple states or on a pan-India basis will be able to apply for a single licence via electronic means. Authorities will be required to approve or reject such applications within 45 days.

The rules also permit women employees to work night shifts from 7 PM to 6 AM, subject to their written consent. Employers must provide safe transportation with pick-up and drop facilities, along with secure and well-lit workplaces for women working at night.

National Floor Wage floor plan

The new wage rules provide for a national floor wage to be fixed by the Centre in consultation with an advisory board and state governments. This floor wage will be determined after taking into account minimum living standards, cost of clothing, housing, and other essential factors as deemed appropriate by the government from time to time. States will not be allowed to set minimum wages below this national floor level.

The move comes at a time of growing labour unrest and wage-related protests in several industrial clusters across the country.

The rules also formally define eight hours as the standard workday for employees paid on a daily wage basis. For other categories of employees, employers will have the flexibility to structure work schedules, provided the total working hours do not exceed 48 hours per week. Industry experts believe this framework could enable more flexible work arrangements, especially in sectors adopting hybrid and work-from-home models.

Detailed provisions regarding rest intervals and workplace safety will be governed separately under the Occupational Safety, Health and Working Conditions Code, 2020.

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